What is the life insurance underwriting process?

Underwriting is the process an insurance carrier uses to evaluate your application, assess your risk, and determine whether to offer coverage and at what premium. It typically involves reviewing your application, medical history, lifestyle, and financial information.

For fully underwritten policies, the process begins with a detailed application covering health history, current medications, family health history, occupation, hobbies, and financial information. A paramedical examination—usually a nurse visiting your home or office—collects height, weight, blood pressure, and blood/urine samples.

The carrier then orders additional records: an attending physician statement (APS) if there are health concerns, prescription drug history, Motor Vehicle Report (MVR), and MIB (Medical Information Bureau) report. The underwriter reviews all information to assign a risk classification: preferred plus, preferred, standard plus, standard, or table-rated.

This process typically takes two to six weeks for fully underwritten policies. Accelerated underwriting programs use data analytics to streamline or eliminate the exam for healthy, lower-risk applicants. Simplified and guaranteed issue products skip underwriting almost entirely, at the cost of higher premiums and lower coverage amounts.